Sundram Fasteners (SUNDRMFAST) Q4 23/24 earnings summary

Executive summary

• Revenue from operations for FY 2023-24 was ₹4,905.65 crore, nearly flat compared to ₹4,921.61 crore in FY 2022-23, reflecting stable performance despite global headwinds.

• Profit after tax increased to ₹479.71 crore from ₹463.74 crore year-over-year, with improved margins and cost controls.

• The company declared a total dividend of ₹6.85 per share for FY 2023-24, with no final dividend recommended.

• Two wholly owned subsidiaries, Sunfast TVS Limited and TVS Engineering Limited, were merged into the company effective April 1, 2023.

Financial highlights

• EBITDA rose to ₹825.37 crore from ₹797.18 crore, a 3.5% increase year-over-year.

• Profit before tax was ₹639.07 crore, up from ₹615.30 crore in the previous year.

• Net worth increased to ₹3,279 crore from ₹2,907 crore, and the debt-equity ratio improved to 0.11 from 0.15.

• Earnings per share (EPS) grew to ₹22.83 from ₹22.07 year-over-year.

• Dividend payout ratio was 30%, with a total dividend of ₹6.85 per share.

Outlook and guidance

• The company expects India's GDP to grow by 7% in FY 2024-25, supporting continued demand in the automotive sector.

• Anticipates moderate growth in passenger vehicles and a rebound in the tractor segment, with risks from commodity prices and geopolitical uncertainties.

• Focus remains on expanding renewable energy usage, operational efficiency, and product innovation.